Sedona and Verde Valley Real Estate First Quarter 2017

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Sedona and Verde Valley Real Estate 1st Quarter 2017

Market forces are hard at work in Sedona and Verde Valley real estate. Missing inventory and increased sales are equating to a strong surge in median sales prices. Sales in single family homes in the Sedona area for the last 12 months are the highest they have been since 2005-2006 at 434 sales, this is a 5% increase over the previous 12 month period, not a huge increase, but with limited inventory it is having an impact. Combine that with only 195 active listings of single family homes and you get a significant surge in median sales price.  In the last 12 month period the median sales prices has gone up 9.6% over the previous 12 month period. For those who are keeping track, those 195 active listings, the median sales price is $699,000. I will go out on a limb and say look for more price increases for the rest of 2017.

To add additional credence to increased prices for the rest of 2017 take a look at sales for the first three months of 2017.  With 89 single family sales in the first quarter, up 12.6% from the first quarter of 2016, there is a $60,000 increase in the median sales price up to $510,000, its highest point in 9 years.

Some other interesting facts of note:

  • Sales over $1,000,000 in the Sedona area are up 30% over the previous 12 month period with 30 sales and the inventory of homes over $1,000,000 at 52 homes is the lowest it has been in over 10 years.
  • Interest rates are still hovering in the 4% range for a fixed rate 30 year conventional loan, hard to beat in any circumstances.
  • Days on market for the last 12 months is 104 days, the lowest days on market since 2005-06, yes we are in a seller’s market.
  • Notice of trustee’s sales is on track to be at their lowest point in 12 years, did I say there is strength in the market?
  • In the Lake Montezuma and Rimrock area in the first quarter of 2017 the median sales price is at $192,500, 28% over the first quarter of 2016 and 225% over 2013, who says it is hard to make money in real estate!

Just the Facts:

Sedona area:  The median price of a single family home rose 9.6% in the last 12 months over the previous 12 month period to $488,000. The number of transactions rose 5% to 434 sales in the last 12 months.  The median sales price for the first quarter of 2017 is at $510,000 a $60,000 gain over the first quarter of 2016.

Vacant land transactions for the last 12 month took a 26% increase over the previous 12 months to 129 sales. However with that increase in transactions the median sale price came in at $120,000, a 12.5% decline. Vacant land sales still are lagging the rest of the market. I still say with the increase in the median sales price of a home we should see more of a recovery in land sales, but the price for new construction makes the used home still a bargain, and a lot less hassle.

The luxury market, over $1,000,000, saw solid gains in the last 12 months with 30 sales, a 30% increase over the previous 12 months. Inventory at 52 homes for sale is the lowest it has been in many years.

Cumulative days on the market saw a significant drop to 104 days. This is the lowest time on market in the last 11 years and is indicative of the amount of inventory on the market. Well priced homes are selling fast.

The median sales price for Condos and Townhomes in the Sedona area showed solid gains with a median sales price for the last 12 months at $291,000 a 12% gain over the 2016 median sales price. This is not surprising as the median sales price for single family homes reaches for $500,000 condos and townhomes are an attractive means to get a toe hold in the market.

The median price for mobile homes continues to climb to $224,000 for the last 12 months up 8% over the prices for mobile homes in 2016. Number of sales is up slightly to 31 sales in the last 12 months.

Camp Verde:

The median sales price for single family homes in the Camp Verde area for the last 12 months rose 17% over the previous 12 month period to $220,000. The number of transactions slowed to 89 sales in the last 12 months, down 19% from the previous 12 month period.

Lake Montezuma and Rimrock:

The median sales price for single family homes in the Rimrock and Lake Montezuma area for the last 12 months rose 16.6% over the previous 12 month period to $175,000. The number of transactions slowed to 63 sales in the last 12 months, down 12.5% from the previous 12 month period. The most notable gains in the market came from the single family sales in the first quarter of 2017 with a 28% increase in prices to $192,500 compared to $150,200 in the first quarter of 2016.

Cottonwood and Cornville:

The median sales price for single family homes in the Cottonwood and Cornville areas for the last 12 months rose 10% over the previous 12 month period to $231,500. The highest price in the last 9 years. The number of transactions stayed steady at 504 sales for the last 12 months. Sales in the first quarter rose to $252,000 up 12% from the first quarter of 2016.

The Bottom Line: As long as inventory remains in short supply we will continue to see prices increase. Interest rates are still great, unemployment is low and sellers in our feeder markets of the upper Midwest and California are selling their homes and heading to Arizona. Barring some sort of international crisis our market should remain strong through the rest of 2017.

For the complete First Quarter Sedona and Verde Valley Statistics:http://old.randycrewse.com/wp-content/uploads/2017/04/Market-Statistics-April-to-March-2004-to-2017-with-observations.pdf

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About the Author:

Randy Crewse has been in the real estate business since 1974. He has sold many types of real estate from farm land and timberland, residential properties to commercial buildings and vacant land. Randy has either owned or managed real estate offices for for over 30 years of his 42 years in the real estate business. Randy and his wife Milton have made Sedona, Arizona their home since 1994.